For years, the biggest obstacle in a Florida real estate deal wasn’t the mortgage — it was the homeowners insurance quote. Premiums spiked, carriers pulled out of the state, and buyers sometimes walked away from otherwise perfect homes because they couldn’t get coverage at a workable price. That trend is reversing. Florida was the only state in the country to see homeowners insurance rates actually fall in 2025, and regulators have kept approving cuts throughout 2026.
The Numbers Behind the Turnaround
According to S&P Global data cited by the Florida Office of Insurance Regulation (OIR), Florida’s average homeowners premium dropped 0.92% in 2025 while the national average rose 5.5%. That shift has continued in 2026: in September alone, OIR approved rate cuts ranging from 3.2% to 10.4% for four insurers covering more than 62,000 policies statewide. Kin Insurance, one of the carriers writing more policies in South Florida, reported average homeowners rate cuts of more than 20% for its customers in Broward, Miami-Dade, and Palm Beach counties specifically.
Citizens Is Shrinking — and That’s a Good Sign
Citizens Property Insurance, the state-backed insurer of last resort, has gone from nearly 1.4 million policies in September 2023 to roughly 255,000 as of September 2026, with OIR projecting about 248,000 by year-end. That decline means tens of thousands of Florida homeowners have been able to move back to private carriers at competitive rates — exactly what regulators hoped would happen as the market stabilized. Insurance-related lawsuits are also down sharply, falling 55% since 2023.
Why Rates Are Coming Down
The turnaround traces back to the 2022–23 legal reforms, including Senate Bill 2-A and House Bill 837, which eliminated one-way attorney fees and assignment-of-benefits arrangements and tightened bad-faith litigation standards. Those changes curbed the lawsuit abuse that had been driving up costs for insurers. More than 20 new or returning companies have entered the Florida market since the reforms took effect, and since January 2024, 48 insurers have filed for rate decreases while 53 others requested no change at all.
What It Means If You’re Buying
Insurability has been one of the top deal-killers in South Florida transactions, especially for older homes and condos. As more carriers compete for business, buyers are seeing quotes come back lower and faster, which helps keep closing timelines on track and monthly housing costs more predictable. It’s still smart to get a homeowners insurance quote before you write an offer rather than after — rates vary widely by roof age, construction type, and flood zone, and your lender will require a policy in place before closing.
What It Means If You’re Selling
A home that was difficult or expensive to insure a year or two ago may be an easier sell today, particularly if you’ve made roof, window, or wind-mitigation upgrades that qualify for additional discounts. Having a recent insurance quote on hand for buyers can be a simple, effective way to remove uncertainty from a showing.
The Bottom Line
Florida’s insurance market is still recovering from a difficult stretch, and premiums here remain among the highest in the country, so this isn’t a return to pre-2020 pricing. But the direction is encouraging, and it’s one more reason the math on buying in South Florida is looking better than it has in several years. This article is for general information only and isn’t insurance, legal, or financial advice — talk with a licensed Florida insurance agent about your specific coverage and rates.
Have questions about how insurance costs might affect a property you’re considering? Oscar Donado and the Ne Plus Ultra Real Estate team are happy to help you think through the numbers — reach out anytime.